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Third
The Santiago Stock Exchange operates stable after the strong fall it suffered in the previous day due to the fear generated in the market by the possibility of a new 10% withdrawal of the pension funds.
The ITSELF, the main indicator of the local market, recorded a marginal decline of 0.05% after 45 minutes of operations and settled at 4,885 points. However, at 9:42 a.m. it was installed in all 4,889 units.
Yesterday the IPSA suffered a contraction of 2.13%, the largest in three weeks, putting an end to a streak of increases of five sessions in which the indicator rose 9%. This is mainly due to the noise generated by the approval of the idea of legislating the project for a fifth withdrawal of 10%.
“If we see that the fifth withdrawal gains strength, we could see strong uncertainty in the market, which could cause us to continue with the corrections we have seen these days,” said José Tomás Riveros, market analyst at Capitaria.
The eventual approval of a new withdrawal from the pension funds implies that the AFPs they would have to go out and liquidate both variable income instruments (shares) and fixed income instruments (bonds), which would put pressure on their prices.
“Furthermore, the oversupply of fixed-income instruments increases the discount rate of all papers and by increasing the rate, the discount rate of future flows is affected, which reduces the economic value of all companies,” said Guillermo Araya, from Rent 4.
world markets
The session takes place amid widespread declines in European stock markets, which closely follow the evolution of the war in Ukraine and await the opening of the world’s largest benchmark, Wall Street, whose futures also point to a selling session.
Despite this, some specialists point out that the outlook for shares in 2022 is positive.
“We’re positive for stocks this year,” Seema Shah, chief strategist at Principal Global Investors, said on Bloomberg Television.
While the market may face more challenges in 2023 and recession risks are rising, “we still think the US economy is pretty good fundamentally,” he said.